Apartment Therapy, October 28, For Black Homeowners, Unfair Appraisals Are All Too Common
Home appraisal discrimination happens when a home is undervalued because of the owners’ race, ethnicity, or religion. Home appraisal discrimination is an especially insidious type of housing discrimination, acting as a form of modern-day red-lining.
In the 1930s, red-lining was a process in which officials outlined neighborhoods in red on maps if they deemed them unworthy of home financing; these outlined neighborhoods were often Black neighborhoods.
Three out of every four neighborhoods that were redlined in the 1930s still struggle today, according to a 2018 study by the National Community Reinvestment Coalition. And on average, homes in majority-Black neighborhoods are undervalued by $48,000 compared to similar homes in other areas, per the Brookings Institution. What happens when a home is appraised for less because of discrimination? Gentrification, disproportionate loss of wealth in the Black community, more food deserts, and continued lack of community resources.
